Wednesday, November 02, 2016

Today's Headlines

  • Drops Worsen for Europe Stocks in Longest Losing Run Since ’14. (video) European shares fell for an eighth day, following a global selloff amid growing nervousness as polls indicated a tightening race between Hillary Clinton and Donald Trump for the U.S. presidency. The Stoxx Europe 600 Index sank to its lowest level in almost four months, led by plunges in banks, automakers and energy producers amid a flight to safety. The U.S. presidential election is increasing anxiety in a market that’s already suffering from skepticism about the economic recovery and concern about the path of central-bank stimulus. A gauge tracking volatility expectations for euro-area shares rose for an eighth day, its longest streak since 2011. “From a European perspective, people are afraid that a Trump presidency may mean even more protectionism and for a region that’s dependent on exports and global trade, that’s something we don’t like,” said Michael Woischneck, who manages about $180 million as a senior equities manager at Lampe Asset Management in Dusseldorf, Germany. “This nervousness is likely short term. Once that and the Fed meeting is out of the way the market should start to stabilize.” The Stoxx 600 fell 1.1 percent, taking its eight-day plunge to 3.7 percent.
  • Emerging Stocks Slide to Two-Week Low as U.S. Race Tightens. Declines in developing-nation assets reflected concern that Trump as president would scrap trade deals and penalize U.S. companies that manufacture products overseas. A Bloomberg poll on Wednesday showed Clinton holding a slim advantage over Trump among independents, a day after an ABC News/Washington Post tracking poll gave the Republican nominee a one-percentage point lead over his Democrat rival. The MSCI Emerging Markets Index of shares dropped 1.3 percent to 890.98 as of 1:14 p.m. in New York, the lowest since Oct. 13.
  • Oil Market Turns Skeptical About OPEC’s Ability to Deliver Cuts. Oil bulls struck gold in late September, when prices surged due to an unexpected OPEC agreement in Algiers to cut crude production in an effort to steady global markets. Now the bulls are looking for more help from the producer club as prices slide. Here are signs of the market’s growing skepticism that a meaningful accord can be achieved.
  • Fed Sets Up Possible December Move While Leaving Rates on Hold. Federal Reserve policy makers left interest rates unchanged while saying the argument for higher borrowing costs strengthened further amid accelerating inflation, reinforcing expectations for a hike next month. “The committee judges that the case for an increase in the federal funds rate has continued to strengthen but decided, for the time being, to wait for some further evidence of continued progress toward its objectives,” the Federal Open Market Committee said in a statement Wednesday following a two-day meeting in Washington. The decision was 8-2.
  • Maersk Shares Sink as Shipping Industry Woes Hurt Profits. A.P. Moller-Maersk A/S, owner of the world’s largest container line, reported a 43 percent decline in third-quarter profit as the shipping industry continues to suffer from overcapacity. Net income fell to $429 million last quarter compared with $755 million a year earlier, the Copenhagen-based company said on Wednesday. That missed the average estimate of $501 million in a Bloomberg survey of 15 analysts. The shares fell as much as 9 percent, the most in four months.
  • Anthem(ANTH) Threatens Obamacare Retreat If Results Don’t Improve. Health insurer Anthem Inc., which has so far stuck with the Obamacare markets as rivals pulled back, said it may retreat in 2018 if its financial results under the program don’t improve next year. Anthem’s comments up the stakes for the Obama administration as the enrollment season for 2017 Affordable Care Act plans begins, with consumers already facing fewer choices and higher premiums in many markets.
  • Eisman of ‘Big Short’ Sees Massive Changes for Hedge Funds. (video
  • Hedge Fund Clients Dump Humans for Computers and Still Lose. (video)
Zero Hedge:

No comments: